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Open AccessArticle

A Discounted Cash Flow and Capital Budgeting Analysis of Silvopastoral Systems in the Amazonas Region of Peru

1
Forestry and Environmental Resources, North Carolina State University, 2800 Faucette Dr., Raleigh, NC 27695, USA
2
Crop and Soil Sciences, North Carolina State University, 101 Derieux Pl, Raleigh, NC 27695, USA
3
Animal Science Faculty, Universidad Nacional Agraria La Molina, Lima 15024, Peru
4
Facultad de Ingeniería Zootecnista, Agronegocios y Biotecnología, Universidad Nacional Toribio Rodriguez de Mendoza de Amazonas, Chachapoyas 01001, Peru
*
Author to whom correspondence should be addressed.
Land 2020, 9(10), 353; https://doi.org/10.3390/land9100353
Received: 28 August 2020 / Revised: 23 September 2020 / Accepted: 24 September 2020 / Published: 25 September 2020
(This article belongs to the Special Issue Agroforestry-Based Ecosystem Services)
Silvopasture is a type of agroforestry that could deliver ecosystem services and support local livelihoods by integrating trees into pasture-based livestock systems. This study modeled the financial returns from silvopastures, planted forests, and conventional cattle-pasture systems in Amazonas, Peru using capital budgeting techniques. Forests had a lower land expectation value (USD 845 per hectare) than conventional cattle systems (USD 1275 per hectare) at a 4% discount rate. “Typical” model silvopastures, based on prior landowner surveys in the Amazonas region, were most competitive at low discount rates. The four actual silvopastoral systems we visited and examined had higher returns (4%: USD 1588 to USD 9524 per hectare) than either alternative pure crop or tree system, more than likely through strategies for generating value-added such as on-site retail stands. Silvopasture also offers animal health and environmental benefits, and could receive governmental or market payments to encourage these practices. View Full-Text
Keywords: silvopasture; economics; financial analysis; carbon payment; Peru silvopasture; economics; financial analysis; carbon payment; Peru
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Chizmar, S.; Castillo, M.; Pizarro, D.; Vasquez, H.; Bernal, W.; Rivera, R.; Sills, E.; Abt, R.; Parajuli, R.; Cubbage, F. A Discounted Cash Flow and Capital Budgeting Analysis of Silvopastoral Systems in the Amazonas Region of Peru. Land 2020, 9, 353.

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